New and Preconstruction Real Estate in Chicago

Protection from Rising Rates.
Access to Declining Rates.

Lock in rates up to 2 years before completions for Preconstruction Properties

Enjoy extra value and extended peace of mind when building your home

Our Builder BestSM program features easy occupancy requirements for the construction or
renovation of a residence.

It's a Win-Win Situation:

If interest rates go up during the construction process, you are protected.

If rates decline, you may exercise your one-time float down option to the new, lower rate* We
offer a broad range of programs to help you achieve your goals including Construction/Perm
AdvantageSM, Market Option PlusSM and more! With a dedication to excellent customer service,
we can tailor a program to your needs.

Accommodating - Financing for the purchase or renovation of a primary or second home
Large Loan Amounts - To $1 million on intermediate adjustable-rate mortgages
Low Start Rates - Rate/payment is fixed for initial term - that helps with budgeting
Security - The safety of locked-in rates and price for 90, 120, 150 or 180 days at no additional
cost
Extended Safety - Expanded lock-in option up to one year**
Smooth Sailing - Flexible disbursement schedules help keep your construction phase running
efficiently

*Change of loan product, float down or re-lock of rate requires underwriting approval.One-time
float down option is available within 60-days of closing to any non-Builder Best program; re-lock
is not allowed within 30 days of the original lock. If re-lock period exceeds 60 days, applicable
extended lock fees will be assessed. **For a fee.

BRIDGE LOANS

A sensible loan option when you're buying and selling.
Bridge the gap.
There's no need to miss out on purchasing your new dream home just because your current
residence is not sold. A bridge loan from Home Savings eliminates the worry of juggling two
house payments. With a bridge loan, you can take advantage of the equity that's built up in your
current home and use it as a down payment on your new one!

At Home Savings, we are pleased to offer bridge loans for both home purchases and
construction.
You'll enjoy these benefits:

No contingency clause needed in your purchase offer
Interest-only payments, either quarterly or semi annually, or deferred up to six months
Payment deferral allows qualification based only on new home mortgage
Loans up to $400,000 and up to 85% of current home value
One-year term available if the bridge loan is used in conjunction with a construction loan
Bridge Loan Example & Worksheet

How much can I borrow?
To see how bridge loans work, look at this example and try it on the worksheet below.

Current home value $150,000
Multiply by 85%      x   .85
Bridge loan amount $127,500
Less existing mortgage balance(s) -$75,500
=======
Equity available for down payment on new home $52,000
New home sale price $200,000
Down payment (from above) -$52,000
=======
New loan amount $148,000

Option ARMs

Option ARMs are available from several lenders. I am so confident in this product, I have
converted both my home and investment property to Option ARMs.

An issue for many homeowners is in managing your monthly income and expenses, or "cash
flow". Income varies monthly for many reasons and unplanned expenses come up when least
expected. For many, our mortgage payment is our largest monthly expense, and the least
flexible. The Option ARM was designed to give you control over your mortgage payment. You
can choose one of four payment options each month based on your cash flow needs.

Minimum Payment    A payment that is set for 12 or 60 months at a reduced rate. The minimum
payment rate for the 12 month option is 1.00% and the 60 month option is 1.90%. This
maximizes cash flow and may also defer payment of interest allowing greater flexibility in
managing your tax deductions. This minimum payment can not increase by more than 7.5% each
year. Read about the important tax considerations of option arms. If you have concerns over
deferred interest, read about the small amount of appreciation required to offset it.

Interest Only Payment    Defer paying principal and improve your monthly cash flow. This option
is not available if the interest only payment is less than the minimum payment.

Fully Amortizing Payment Options    You may make a principal and interest payment based on
either a 30 year or 15 year payment schedule. I have included a Option ARM statement as well.

The Option Arm series allows you to choose your index from the 1 month LIBOR or the MTA .

Here is a 10 year average comparison between a 30 year fixed and fully indexed LIBOR, MTA,
COFI, and the 1 year Treasury Index in chart form.

Additional Options    If you want the additional security of a fixed payment while taking advantage
of the low Option ARMs payment rates, there is a 5 year fixed payment option. With the 5 year
Fixed Payment, you have a fixed minimum payment for five years. You have the four payment
options to select from to manage your cash flow. And, you may increase the term of your option
arm from 30 to 40 years lowering your payment further. LTVs are available up to 100%!

The Minimum Payment Advantage    The example below is based on a $400,000 mortgage. It
compares a traditional 30 year fixed rate payment based on the above 10 year average to the
minimum payment available on the Option ARM again based on the 10 year average. Assumes
that the Minimum Payment increases by the maximum 7.5% per year.

1. What is a reverse mortgage?

A. A reverse mortgage is a loan that enables senior homeowners, age 62 and older, to convert
part of their home equity into tax-free* income—without having to sell their home, give up title to
it, or make monthly mortgage payments. The loan only becomes due when the last borrower (s)
permanently leaves the home.

* Consult Tax Advisor. Not all products available in all states.

2. How does a reverse mortgage differ from a home equity loan?
Q. How is a reverse mortgage like a home equity loan? How is it different?
A. Both a reverse mortgage and a home equity loan use the equity you have built up in your
home to provide you with readily available cash.

They differ in that with a home equity loan you must make regular monthly payments of principal
and interest. However, with a reverse mortgage you do not make any monthly mortgage
payments for as long as you stay in the home.

Q. Can my current income influence my ability to get a reverse mortgage?
A. No. Since reverse mortgage borrowers need not make monthly repayments, there are no
income qualifications.

3. What are the advantages of a reverse mortgage?
Q. What are the advantages of a reverse mortgage?
A. There are many. Here are a few of the most significant:

Remain independent. A reverse mortgage allows you to remain in your home and retain home
ownership.
Stay in your home. It allows you to remain in your home and retain home ownership.
No monthly mortgage payments. You need not pay back the reverse mortgage loan nor make
any monthly mortgage payments until you permanently move out of the home.
Tax-free money. Because the money you receive from a reverse mortgage is not considered
income, it is tax free* and will not affect your Social Security or Medicare benefits.
Freedom and flexibility. The money you get from a reverse mortgage is yours to use in any way
you choose.
* Consult Tax Advisor

Q. I’ve heard that with a reverse mortgage the lender would own my home. Is this true?
A. It’s absolutely false. The borrower retains title to the property. The reverse mortgage lender is
merely extending a loan to the borrower.

Because the homeowners retain title, they remain responsible for the payment of property taxes,
insurance, utilities, home maintenance, and other expenses — just as they would with a standard
first mortgage or home equity loan.

Q. Can I refinance a reverse mortgage, as I would be able to do with a traditional home
mortgage?
A. Yes. Refinancing can make sense if your home increases in value or interest rates drop.

Q. Is it possible for my loan balance to become greater than the value of my home?
A. No. You can never owe more than what your home is worth. What’s more, since the reverse
mortgage is what is known as a "non-recourse" loan, the lender cannot seek repayment from
your income, your other assets, or your estate. In other words, the house stands for the debt.

Q. Can a reverse mortgage lender take my home away if I outlive the loan?
A. No they cannot. And the loan is not due at that time either. In fact, you don’t need to repay the
loan as long as you or another borrower continues to live in the house and keep the taxes paid
and insurance in force.

4. How much money can I get?
Q. How do you determine the amount of cash I am eligible for?
A. The amount you can borrow depends on several factors, including your age, the type of
reverse mortgage you select, current interest rates, the location of your home, and the
appraised value of your home and FHA's lending limits for your area. In most cases, the older
you are, the more valuable your home, and the less you owe on it, the more money you can get.

5. How can I use the money I get from a reverse mortgage?
Q. Are there any limits on how I use the money I receive from a reverse mortgage?
A. You can use the money for anything you choose, from daily living expenses, home
improvements, healthcare expenses, paying off existing debts, or simply enhancing your
retirement years. For many people, the money provides a "financial security blanket," in case
unexpected expenses arise.